Dutch medical device manufacturer Philips announced on Monday that it would cease new sales of sleep machines in the United States, following a series of recalls that have continued to impact its financial performance.
The company managed to reduce its losses for the year 2023 in comparison to the previous year, as it strives to recover from what it had characterized as a “very difficult” 2022. Philips reported losses of 463 million euros for the entire year, a significant improvement from the 1.6 billion euros in losses recorded in 2022. Chief Executive Roy Jakobs commended the company’s “strong results.”
“While there is more work to be done, the progress we achieved in a volatile world lays a solid foundation for sustained performance,” stated Jakobs.
Since 2021, the company has been contending with a series of crises related to its DreamStation machines designed for treating sleep apnea, a disorder characterized by interrupted breathing during sleep.
“Resolving the consequences of the Respironics recall for our patients and customers is a key focus area, and I acknowledge and apologize for the distress and concern caused,” Jakobs added.
The firm said it had entered into a deal with US authorities that consists of a “roadmap” of targets to allow Philips to conform with regulatory requirements.
“Until the relevant requirements of the consent decree are met, Philips Respironics will not sell new sleep therapy devices or other respiratory care devices in the US,” announced the company.